New York City denied request FEMA return $80M in migrant funds

A federal judge blocked New York City’s request for President Donald Trump's administration to return $80 million in Federal Emergency Management Agency (FEMA) funds allocated for migrant shelters and services.

Judge Jennifer Rearden, from the Manhattan bench on Wednesday, refused to issue New York City a temporary restraining order to claw back the funds because the city did not prove it would suffer irreparable harm without the money. 

"We’re disappointed the court did not grant the emergency relief we were seeking while the case continued, and we are evaluating next steps," a New York City Law Department spokesperson told Fox News. 

The City of New York filed the lawsuit on Feb. 21 against Trump, FEMA, the Treasury Department and the Department of Homeland Security (DHS), arguing the $80 million was already approved and paid out by FEMA.

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"This morning, our office learned about the federal government clawing back more than $80 million in FEMA grants applied for and awarded under the last administration, but not disbursed until last week," Mayor Eric Adams, D-N.Y., said in an X post the day the lawsuit was filed. 

The lawsuit said the funds were revoked on Feb. 11, after Elon Musk said the Department of Government Efficiency found a $59 million FEMA payment to New York City for luxury hotels used to house illegal migrants. DHS Secretary Kristi Noem said she rescinded the funds over concerns that the Roosevelt Hotel is the "Tren de Aragua base of operations."

"?I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels. FEMA was funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations and was used to house Laken Riley’s killer. Mark my words: there will not be a single penny spent that goes against the interest and safety of the American people," Noem said in an X post. 

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NYC Comptroller Brad Lander, a mayoral candidate vying for Adams’ seat, said the Trump administration "stole" the funds. 

??"Let’s be clear: Donald Trump and his loser lackies — Elon Musk and Kristi Noem — acted illegally when they stole $80 million from New York City’s bank account. Seizing our Congressionally-authorized, FEMA-approved money was nothing more than attempted retribution against immigrants seeking asylum, many of them sent here on buses by Governor Abbott from Texas. Like all of Trump’s illegal efforts to freeze and seize Congressionally-authorized funds, this action harmed taxpayers and working families and would force the City to cut services if not reversed," Lander said in a statement following the ruling on Wednesday. 

The ruling came as Adams and his fellow "sanctuary city" Democratic mayors testified about their response to the migrant crisis on Capitol Hill on Wednesday. 

"I’m here today to testify on how New York City can continue to reduce crime, even as a sanctuary city," Adams told the House Oversight and Government Reform Committee. 

"To be clear: A sanctuary city classification does not mean our city will ever be a safe haven for violent criminals. It also does not give New York City the authority to violate federal immigration laws. To the contrary, New York City will always comply with city, state, and federal laws, as it does now," he added. 

Adams vowed to protect law-abiding New York City residents, regardless of immigration status, while also directing NYPD officers to comply with DHS and ICE. The mayor’s comments reflect his ongoing effort to strike a balance between protecting New Yorkers and coordinating with the Trump administration’s illegal immigration crackdown. 

As New York City struggled to keep up with the busloads of migrants entering the city's overwhelmed shelter system, Adams was critical of former President Joe Biden's handling of the migrant crisis. 

In his plight against the migrant crisis, Adams has developed a relationship with Trump — holding a private meeting with the president in West Palm Beach, Florida, and then meeting with border czar Tom Homan to discuss the migrant crisis in New York City. 

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Homan said he would hold Adams to his commitments, telling "FOX & Friends," "If he doesn't come through, I'll be back in New York City, and we won't be sitting on the couch. I'll be in his office, up his butt, saying, 'Where the hell is the agreement we came to?'"

Adams' office did not immediately respond to Fox News Digital's request for comment. 

Fox News’ Michael Dorgan and Grace Taggart contributed to this report.